How do I do costing on Posibolt

How do I do costing on Posibolt

Costing on Posibolt

Posibolt supports three types of costing, Depending upon the customer's requirement we can stick to any one of these.

Last cost Method


The cost associated with the most recent purchase of inventory items will be the unit cost for the last cost method.
The formula is as follows:
Unit Cost=Total Cost on Last purchase / Total Quantity Purchased on Last purchase

Last invoice Method


Calculating the cost using the last invoice method involves using the cost information from the most recent invoice for the items in inventory. 
The formula is as follows;
Unit Cost=Total Cost on Last Invoice/ Total Quantity Purchased on Last Invoice

Average PO


To calculate the cost using the average purchase order method, you'll determine the average cost of the items based on the purchase orders received. This method assumes that the cost of items in inventory is an average of the costs from multiple purchase orders. 
The formula is as follows:
Average Unit Cost= Total Cost/ Total Quantity Purchased

Costing with calculations example: 



More information:


  1. Selecting the "Show sales price" tick box you will include all sales transactions (Sales + Customer Return Orders) which will show order and/or invoice price. The date range works by using the sales transaction's date of creation.
  2. For Customer shipment or Customer return, the order number will be shown on the Item Ledger if "show sales price" is selected and if not the shipment number will be shown.
  3. This report is an average costing report which works with the average PO (purchase order) and Average Invoice costing method

Example: When the Item goes into negative from 0 quantity

This case needs to change the cost detail calculation logic, the  condition is to post with the current cost price when stock on hand qty after Goods receipt <= 0
Debit the Product asset   100
Debit the Price difference 20  (or cost variance)
Credit on no Invoiced receipts 120

Here is a case where the stock on hand before RG is negative (say -10) and received stock qty 15; the stock on hand after RG is 5

The unit cost before RG is 100
and the RG transaction unit cost 120
Unit cost after RG is 120 for qty 5

Calculation break down

15 * 120 = 1800
[ -10 * 100 + 1800 = -1000 + 1800 = 800; 800/5 = 160 as per ledger balance]
to 
10 * 100 + 5 * 120 = 1000 + 600 = 1600 ( valued at current cost for qty till 0 and for qty > 0 valued at transaction cost)
[-10 * 100 + 1600 = -1000 + 1600 = 600 ; 600 / 5 = 120]

When the above is the case, the product asset balance will match with the stock valuation of the item [unit cost * qty = product asset]
Posting of Receipt

Debit Product asset  1,600
Debit Price difference (or cost variance) 200
Credit on no Invoice receipts 1,800

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